Legacy Iron Ore Ltd (LCY) AI Stock Analysis

• Market Cap: AU$99.17M
• Dividend Yield: N/A
• Average Volume (3M): 358.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: N/A
• EPS Growth: -2000.00%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 9,917,419,000
• 10 Day Avg. Volume: 377,424
• 30 Day Avg. Volume: 358,096
• PEG Ratio: -0.19
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 165.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

Legacy Iron Ore Ltd has shown strong revenue growth, but this is offset by significant operational losses and negative cash flows, resulting in a low financial performance score. The technical analysis suggests neutral to bearish signals, while a negative P/E ratio and lack of dividend yield present valuation challenges. These factors collectively contribute to a low overall stock score.

Legacy Iron Ore Ltd Business Overview & Revenue Model

Company Description

Legacy Iron Ore Limited engages in the exploration, evaluation, and development of mineral properties in Australia. It primarily explores for iron, gold, base metals, tungsten, and manganese, as well as rare earth metals. The company's projects include the Mt Bevan iron ore project, and Pilbara iron ore and manganese projects located in Western Australia; the South Laverton gold project covering an area of 460 square kilometers located in the South Laverton region; and the East Kimberley project comprising three exploration licenses located in the Halls Creek area. It also owns interest in the Mt Bradley rare earth metal project located in Australia. The company was incorporated in 2007 and is based in Perth, Australia. Legacy Iron Ore Limited is a subsidiary of NMDC Limited.

How the Company Makes Money

Legacy Iron Ore Ltd generates revenue primarily through the exploration and development of mineral resources. The company aims to capitalize on its mineral assets by advancing projects from the exploration phase to production, either independently or through partnerships and joint ventures. Key revenue streams include the sale of extracted minerals, such as iron ore and gold, and potential royalties from joint venture agreements with other mining companies. Additionally, Legacy Iron Ore may engage in strategic partnerships or sell stakes in its projects to generate funding and share project risks, contributing to its overall earnings.

Legacy Iron Ore Ltd Financial Statement Overview

Summary

Legacy Iron Ore Ltd is experiencing rapid revenue growth, but this is overshadowed by significant operational losses and negative cash flows. The company's low leverage and strong equity position are positives, but the persistent losses and cash burn pose risks. The focus should be on managing operational efficiency and cash flow to improve financial health.

Income Statement

Legacy Iron Ore Ltd has shown a significant increase in revenue from $50,000 in 2023 to $2,083,003 in 2024, indicating substantial growth. However, the company continues to incur heavy losses with a negative EBIT and net income, resulting in negative profit margins. The gross profit margin is positive, but the net profit and EBIT margins are significantly negative, reflecting operational challenges.

Balance Sheet

The balance sheet of Legacy Iron Ore Ltd reflects a strong equity position with a debt-to-equity ratio of 0.0014, indicating low leverage. The equity ratio is high at 73.9%, suggesting a stable financial foundation. However, the company has limited total debt, which is a sign of minimal financial risk but also limits financial leverage.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows indicating cash burn. The free cash flow to net income ratio is negative due to negative free cash flow, highlighting cash management issues. While the company raised significant cash through financing activities, it continues to spend more than it generates.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
28.87M	2.08M	50.00K	0.00	0.00	86.25K
	Gross Profit
25.49M	2.08M	-11.16K	-82.50K	-51.75K	61.35K
	EBIT
-26.92M	-11.76M	2.01M	-1.01M	-688.25K	-886.72K
	EBITDA
-24.62M	-9.53M	2.07M	-923.10K	-636.50K	-861.83K
	Net Income Common Stockholders
-28.03M	-9.59M	2.01M	-1.01M	-951.40K	-959.93K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.89M	15.26M	9.74M	7.51M	10.34M	9.21M
	Total Assets
34.93M	47.22M	25.61M	23.61M	24.21M	22.24M
	Total Debt
31.92K	49.77K	82.29K	24.00K	69.62K	132.15K
	Net Debt
-2.09M	-11.33M	-2.64M	-466.83K	-9.64M	-9.08M
	Total Liabilities
16.90M	12.31M	288.79K	290.53K	322.43K	316.56K
	Stockholders Equity
18.03M	34.90M	25.32M	23.32M	23.89M	21.93M
Cash Flow		Free Cash Flow
-23.55M	-13.50M	579.48K	-2.33M	-2.80M	-1.76M
	Operating Cash Flow
-17.77M	-9.95M	2.01M	82.50K	-648.49K	-964.58K
	Investing Cash Flow
-2.08M	1.83M	3.79M	-8.30M	-1.80M	-710.02K
	Financing Cash Flow
16.78M	16.78M	-41.24K	-45.61K	2.94M	9.45M

Legacy Iron Ore Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LCY, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LCY.

Legacy Iron Ore Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	4.14%	2.90%	-30.49%
LCY	39 Underperform	AU$99.17M	―	-87.55%	―	―	-2000.00%
CIA		C$2.07B	14.12	10.03%	5.15%	―	―
BHPLF		$123.23B	11.14	26.20%	4.00%	―	―
FSUMF		$31.56B	8.20	20.21%	6.06%	―	―
MTGRF		$202.74M	65.86	-35.86%	―	―	―
RTNTF		$98.48B	9.83	21.04%	3.36%	―	―

Legacy Iron Ore Ltd Corporate Events

Legacy Iron Ore Reports Significant Progress in Key Projects

Legacy Iron Ore Limited reported notable progress in its South Laverton Project, with successful ore sales and a new Right to Mine Agreement with Bain Global Resources, promising shared profits from mining activities. Encouraging drilling results at the Blue Peter deposit indicate significant gold mineralization, enhancing the company’s resource potential. Additionally, the Mount Bevan Project saw advancements with a mining lease application and infrastructure plans, reinforcing Legacy Iron’s strategic growth in the mining sector.

Legacy Iron Ore Reports Cash Flow Results for March 2025 Quarter

Legacy Iron Ore Ltd reported a net cash outflow from operating activities of $1.97 million for the quarter ending March 31, 2025, driven by significant production costs. The company also experienced a net cash outflow from investing activities totaling $2.815 million, primarily due to expenditures on exploration and evaluation assets. Despite these outflows, the company had previously secured $22.216 million from financing activities over the past year, which has bolstered its cash reserves.

Legacy Iron Ore Announces Revised Resource Estimates for Mt Celia Project

Legacy Iron Ore Ltd has announced revised mineral resource estimates for its Mt Celia Gold Project, showing a total of 4.30 million tonnes at 1.84 g/t for 255,200 ounces, with a 27% increase in grade. The revision indicates a 46% decrease in the total contained gold in the Measured and Indicated category due to mining depletion. The company sees significant potential for further development and new discoveries within the project, with mineralization open at depth and potential for underground mining at Blue Peter deposits. These developments are expected to enhance the economic potential of the Mt Celia project and support Legacy Iron’s growth strategy.

Legacy Iron Ore Announces Revised Resource Estimates for Mt Celia Gold Project

Legacy Iron Ore Ltd has announced revised mineral resource estimates for its Mt Celia Gold Project, showing a total mineral resource of 4.30 million tonnes at 1.84 g/t for 255,200 ounces, with a 27% increase in grade. The company highlights that 46% of the resource is in the Measured and Indicated category, with significant potential for further development and discovery of new mineralization. The updated estimates support the economic potential of the Mt Celia project and suggest future opportunities for underground mining, particularly in the Blue Peter deposits. The company remains focused on extending existing mineralization and discovering new resources within the project area.

Legacy Iron Ore Partners with Bain Global Resources for Mt. Celia Gold Project

Legacy Iron Ore Ltd has entered into a Right to Mine Agreement with Bain Global Resources for the Mt. Celia gold mining operations. Under this agreement, Bain Global Resources will finance up to $10 million of mining activities, with profits shared between the two companies. Initially, Legacy will receive 75% of the net profits until it recovers $20 million, after which profits will be split equally. This strategic partnership is expected to enhance operational efficiencies and extend the operational life of the Mt. Celia project, leveraging high gold prices to maximize the mine’s potential and shareholder value.

Legacy Iron Ore Reports Promising Gold Intersections at Mt Celia

Legacy Iron Ore Limited has announced promising results from its recent drilling program at the Mt Celia Gold Operation, with significant gold mineralisation intersected in 11 out of 27 holes drilled north of the Blue Peter 2 pit. These results, which include high-grade intersections, suggest potential for further exploration and development, enhancing the company’s prospects in the gold mining sector.